Extension of Micro Hydro Power for Sustainable Livelihoods

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The project aims to demonstrate the viability of an innovative business model for the bulk sale of energy produced by a micro hydro plant to nearby villages, which would contribute to the sustainability of the plant by providing increased finances from the sale of this excess energy.

More than 2,500 micro hydro plants have already been installed in Nepal. As a result of government subsidies, the installation of plants with higher capacities than necessary to meet the actual electricity demand is a common problem and leads to the production of excess energy that is wasted. The micro hydro plants also have to cope with weak cash flow and are operating unsustainably. To solve this issue, transmission and distribution lines will be established and managed to sell the electricity produced and provide around 500 households with reliable energy. The specific objectives of the project are:

  • To develop a new role of energy distributor to manage the micro hydro power transmission & distribution lines and energy sales in the village
  • To increase access to a reliable energy supply for household electrification and rural enterprises
  • To disseminate the lessons learned and advocate the up-scaling possibilities of the business model
The project is being developed and led by the Rural Development Service Centre and should be implemented within two years. It includes workshops and visits for national policy makers and other stakeholders. The project partners are the Darna MHP plant management committee and the Kalagaun electrification management committee.    

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Exchange: Knowledge and Advocacy for Productive End Use of Micro Hydro Projects

This exchange activity aims to contribute to the sustainability of micro hydro plants in Southern and Southeast Asia by increasing the load factors and financial bases through the implementation of proven best practices for productive end uses.